Ger­many’s over­all debt ra­tio fell in 2014: Bun­des­bank

The China Post - - BUSINESS INDEX & -

Ger­many’s to­tal debt in­creased slightly in 2014, but be­cause the econ­omy grew, its pro­por­tion of over­all out­put fell, the coun­try’s cen­tral bank or Bun­des­bank said Wed­nes­day.

“Ac­cord­ing to pro­vi­sional cal­cu­la­tions, gen­eral gov­ern­ment debt in Ger­many amounted to ap­prox­i­mately 2.168 tril­lion eu­ros (US$2.3 tril­lion) at the end of 2014. The debt level thus in­creased by 2.0 bil­lion on the year,” the Bun­des­bank said in a state­ment.

But be­cause gross do­mes­tic prod­uct also ex­panded, “the debt ra­tio, i.e., the level of debt in re­la­tion to GDP, de­creased by 2.4 per­cent­age points to 74.7 per­cent,” the Bun­des­bank said.

Un­der EU rules, mem­ber states are not al­lowed to run up over­all debt in ex­cess of 60 per­cent of GDP.

The Bun­des­bank said that since 2010, gen­eral gov­ern­ment debt in Ger­many had been grow­ing steadily by a to­tal of 91 bil­lion eu­ros, which is equiv­a­lent to 3.1 per­cent of cur­rent GDP, as a re­sult of mea­sures re­lat­ing to the eu­ro­zone sovereign debt cri­sis.

“The cu­mu­la­tive ef­fect of the sup­port mea­sures in fa­vor of do­mes­tic fi­nan­cial in­sti­tu­tions since 2008 amounted to 236 bil­lion eu­ros or 8.1 per­cent of GDP,” the state­ment said.

Such ef­fects de­creased in the past 2 years, how­ever, it said.

Un­der the Euro­pean bud­getary sur­veil­lance pro­ce­dure, EU mem­ber states are obliged to sub­mit data on their gen­eral gov­ern­ment deficit and debt lev­els to the Euro­pean Com­mis­sion twice a year, at the end of March and end of Septem­ber.

For this pur­pose, the fed­eral sta­tis­ti­cal of­fice cal­cu­lates the public deficit, while the Bun­des­bank cal­cu­lates the over­all debt level.

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